National Blog

GOP upset over Fed's (selective) transparency

For an institution that is so opposed to transparency, the Fed is remarkably unconcerned about leaks from whistle blowers. Members of the House Committee on Financial Services Chairman Jeb Hernsarling send a letter to Federal Reserve Chair Janet Yellen expressing concerns that the Fed doesn't have "sufficient internal controls" to prevent leaks. The letter also expressed concerns that the Fed has not been responsive to a 2012 congressional inquiry regarding a leak of confidential information from a Federal Open Market Committee Meeting (FOMC) to Medley Global Advisers, a "market research firm." Obviously, having access to confidential information from an FOMC meeting would aide Medley's market research.

According to the Texas Republican's letter to Yellen, the Federal Reserve's general counsel had previously launched an investigation into the matter, but the "inquiry was dropped at the request of several member of the FOMC."

Hensarling said the Fed's inspector general is currently looking into the case and that there is now also a pending criminal investigation.

In another letter to Mark Bialek, the Fed's inspector general, Hensarling said the office of the inspector general has been "withholding" information from the committee related to the ongoing probe into the reported 2012 leak.

If you think all Americans, not just those with connections at the Fed, should have more information on the FOMC make sure you sign the Audit the Fed petition to Congress.